Michael Porter Argues That

question 51

Multiple Choice

Michael Porter argues that

• A) those firms that create superior value will achieve superior profitability.
• B) standardization of product is a basic strategy for attaining a competitive advantage in an industry.
• C) it is necessary for a firm to have the lowest cost structure or create the most valuable product.
• D) it is important that the gap between value and the cost of production be smaller than that of competitors.

Comprehend how compensation systems can be designed to enhance organizational performance.

Understand the impact of organizational culture and values on employee selection and performance.

Analyze the role of technology in transforming HRM practices.

Appreciate the importance of ethical behavior and social responsibility in HRM.

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Definitions:

Parent Company

A corporation that holds a controlling interest in one or more subsidiary companies.

Subsidiary

A company that is controlled by another company, known as the parent company, typically through a majority of the voting shares.

Common Shares

Equity ownership units in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries.